Employee ownership, motivation and productivity
A research report for Employees Direct from Birkbeck and The Work Foundation
By Jonathan Michie, Christine Oughton and Yvonne Bennion November 2002
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About the authors/Acknowledgements Foreword, by Will Hutton Executive Summary 1. Introduction 2. Site visits and interviews 3. Follow-up surveys 4. Focus groups 5. Discussion and Conclusion References 3 4 5 6 10 18 21 30 33
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The Work Foundation. Registered as a charity no: 290003 This issue first printed November 2002 ISBN 1-84373-003-0
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E M P LOY E E S D I R E C T R E P O R T N O V E M B E R 2 0 0 2
About Employees Direct
Employees Direct is a working party established in July 2001, following a report commissioned by Mutuo1 on how the government’s aim of enhancing productivity through the motivational effects of employee shareholding might best be realised. 2 Employees Direct brings together academics, practitioners and opinion formers. Its intention is to report on the potential for employee shareholding to: first, play an active role in improving the corporate governance and accountability of firms second, to enhance employee motivation and productivity. This report has been commissioned to help inform this process. The Working Party members include Mutuo, the CBI, Job Ownership Ltd, the TUC, Unity Corporate Advisers, Cobbetts Solicitors, the Cooperative Bank, the UKCC, Balpa, Prospect, Birkbeck and The Work Foundation (formerly The Industrial Society). For more information see www.employees-direct.org The research for this report has been undertaken for Employees Direct by staff from Birkbeck and The Work Foundation. The three authors are all members of the Employees Direct working party.
We are grateful to the companies and employees who arranged and participated in the site visits and interviews, and with the follow-up surveys and focus groups. We agreed not to name individuals or companies, so the thanks have to be anonymous. However, four of the companies – Coolkeeragh, Stagecoach, St Luke’s Communications and Tullis Russell – agreed to be named. We are therefore very pleased to be able to thank from Stagecoach Derek Scott, the Company Secretary, and two bus drivers, Steve Linger and David Wheatcroft; from Tullis Russell the Chief Executive Fred Bowden, plus Gail Ellis, Pam Landells and Erik Priessman; and from Coolkeeragh Power Limited Micky Creswell, for arranging the site visit and interviews, and the subsequent focus group. ICOM, the federation of worker co-operatives, kindly provided contact details for their member companies, and several ICOM members allowed us to conduct follow-up surveys among their employees. We are grateful, for variously providing material, discussions and advice, to Robin Blagburn of Unity Corporate Advisers; Professor Richard Freeman from Harvard University; Peter Hunt, Chief Executive of Mutuo; and John McGurk of Balpa. Yvonne Bennion would like to thank her colleagues Graham Houston, John Arbuckle, Stephanie Draper and Brooke Guenot for helping to set up and conduct the focus group meetings. Jonathan Michie and Christine Oughton would like to thank their colleagues at Birkbeck who assisted with this research, Michael Lee, Omiros Sarikas, Lee Shailer and Katie Wright.
About the authors
Jonathan Michie is the Sainsbury Professor of Management at...
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